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The Fair Work Commission has today announced its Annual Wage Review 2015-16 Decision.
Employers should note the following new rates and thresholds that apply from 1 July 2016.
1. National minimum wage
From 1 July 2016, the national minimum wage will increase by 2.4%. This means the national minimal wage will be $672.70 per week or $17.70 per hour based on a 38 hour week. This constitutes an increase of $15.80 per week to the current national minimum weekly rate or 41 cents per hour to the hourly rate.
2. Minimum award wage rates
Minimum wage rates in modern awards will increase by 2.4% from 1 July 2016. Employers should review the applicable awards to ensure ongoing compliance. For employers paying above award wages, an increase to award wages can generally be absorbed into the existing above award payment, provided that the relevant award permits this approach and that minimum award conditions are met.
3. Superannuation contributions
Employers must continue to contribute 9.5% of an employee’s ordinary time earnings to a complying superannuation fund. The maximum superannuation contributions base will be $51,620 per quarter. This means that employers must contribute 9.5% of ordinary time earnings to $51,620 per quarter. Employers are not required to make contributions above this threshold unless they have agreed to do so on a contractual basis.
4. High income threshold
The high income threshold applying to commence unfair dismissal applications will increase to $138,900 per annum from 1 July 2016. This means that on and from today:
Employers should note that when calculating earnings for the purpose of the high income threshold, the following will be included.
The following will not be included as part of an employee’s earnings:
5. Fair Work Information Statement
Note that a new version of the Fair Work Information Statement including reference to the new high income threshold will be available shortly. Copies can be obtained from the Fair Work Ombudsman website.